Changing journeys: How we save, work and retire

Future generations of retirees face a new set of risks that are increasingly borne by the individuals themselves. That means that a lack of information, a lack of opportunities, bad decisions and bad luck can have dangerous consequences for people’s future retirement security, says a new report from Phoenix Insights.

The report, Changing Journeys: How we save, work and retire, highlights that most people will no longer spend their lives in consistent full-time work, followed by retirement at the state pension age on an adequate and guaranteed income for life. While this will bring some flexibility and opportunity for some, it will throw others into greater precarity. The report says the financial services industry, government, employers and civil society all have a critical and urgent role to play to improve how people are supported to navigate risk and be sufficiently protected.

The report draws on data from national statistics and official sources, relating to wealth, the labour market and social attitudes, analysis with the Pensions Policy Institute and new Ipsos polling of 6,000 adults. It uses this to look at how demographic, societal, workplace and economic changes are affecting how we save, how we work, how we retire and how we live in retirement. It also highlights what we think about the future. For instance, the report cites statistics showing only 27% of people think they will be a carer by the time they are 67. This is despite the fact that in reality half of people become a carer by the time they are 50.

Outlining “a story of complexity” and the differing fortunes of different demographics, it states: “If future generations of retirees are going to be better supported on their journeys to and through retirement, it is essential that policymakers, the financial services industry, employers and civil society organisations understand and respond to these changing dynamics.”